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I cannot speak to this article but I know a lot of college graduates and people in masters programs, I would say C#, VB.Net, and Java are all very popular. The reason why is very simple - all three are free to learn and have great resources for students.
Universities seem to be adopting C# from Java however.

I'm not sure what a "young, hip developer" is. I think "hip developer" is an oxymoron within its own right.

It is worrying how unpopular ASM, C/C++, and other lower level languages are outside of the elite technology schools - some of which barely give a good programming education as is.

edit: Seems the NY piece is a bunch of lies that misquoted Tim O' Reilly. What he actually said was that young startup companies are very interested in mobile platforms - iOS 4.0 and Android. Which sounds like it could be true, mobile platforms are cheap
relatively speaking to create revenue generating software for. I would say that Microsoft might be falling behind in that area as they lack any real competition in the mobile area (despite what you read on the C9 forums)/